Businesses forced to adapt during COVID-19 crisis

Preliminary statistics released by the Ministry of Labour, Invalids and Social Affairs indicate that roughly 9,000 workers throughout 22 provinces and cities have been laid off as a result of their businesses cutting or suspending production due to the impact of the COVID-19.

In an attempt to weather the storm and cope with the fallout from the epidemic, many enterprises have been forced to adapt themselves to the crisis by putting forward alternative business and market research strategies in order to maintain production and make preparations for the post-crisis period.

Businesses are forced to adapt to the new production strategy as the coronavirus epidemic is lingering on.

Several popular garment makers such as Garment No10, Viet Tien, Hoa Tho, Nha Be, and Phong Phu have begun to produce anti-bacteria face masks which have been in short supply in recent weeks.

Elsewhere, firms that supply essential goods necessary for daily consumption have also moved to introduce new strategies in an attempt to adapt to the new business climate.

Indeed, Masan, the group that owns the VinMart and VinMart+ supermarket chains, believes that alongside ensuring supply sources of quality products remain in place, all of its retail stores have offered online or phone services, making it convenient for consumers to place orders and then subsequently have their items delivered.

With the scale of the COIVD-19 being vast, economic experts agree that the crisis can be considered as a test of the economy's ability to withstand external shocks, forcing it to become more competitive, improve its overall production capacity, and develop consumption within its own domestic market.

According to Mac Quoc Anh, Vice President and General Secretary of the Association of Small and Medium-sized Enterprises, this marks the time for experienced enterprises to restructure their organisation and production chains so they can get ahead and enjoy more efficient business strategies in the context of Industry 4.0.

In contrast, many small firms will lose out oe even go bankrupt if they fail to seize their opportunities such as their state subsidy, Anh says.

Sharing this view, economist Nguyen Minh Phong believes the crisis will test each businesses’ ability to respond to market fluctuations and introduce new, efficient business solutions.

The crisis will also give enterprises a lesson in how to connect with employees. If firms are able to guarantee both the short- and long-term interests of their employees, then they will be able to retain their workforce and thus maintain post-crisis business efficiency, says Phong.